I have approximately 40 acres in Martin county:
W/2 of SE/4 of Section 1 W/2 of NW/4 of Section 4 E/2 of Section 4
Horizontal wells being drilled in the section immediately east of my property. Getting steady stream of unsolicited offers. What is a fair market amount I should ask of prospective buyers?
I just sole 10 mineral acers for 25,000 per acer. this was in the NE4. they have permitted 3 horizontal wells, on this property.
It depends on what your lease royalty is and if there is permits and or horizontals on it already.
Which block and section are you located?
Nitzer, there are many ways to value a property. The fact that there are wells on your neighbors mean nothing to you from a cash flow perspective, rather it will tell you what the likely amount of production your acreage will yield. From a back of the envelope calculation, using 40 NMA, 640 Unit Spacing, 25% royalty, 500,000 bbl EUR wells, $50/bbl oil, 3 wells per unit (per lakebumb’s calcs), your acreage appears to be worth about $29,296.88 per NMA. That doesn’t consider the time value of money. I hope this gives you a good ballpark. Good luck!
Something is happening in Martin. I have had no less than 10 unsolicited offers and multiple phone calls about my holdings in Martin. N/2, SW/4, Section 9, Block 35, TWP 1N, T&P RR CO survey, abstract 45. There are about 9 horizontals next door in Sec. 8 by XTO. Anyone know of anything going on?
Judith, I see XTO has 3 producing horizontal wells beginning in Section 8 and 20 approved permits for that section going South. WOW
Clint Liles
Is there any way I can find out if there is activity in Section 9 HA, Lanier S R/SF6948 A941 in Martin County? Thanks so much!
Martin County is real binary. Either its a bunch of Hz wells or its zero. See map. Even if things go at the current boom pace it will take a lot of years until everybody has a bunch of wells. As Clint says, I guess the nearby units that have permitted/spud a bunch of wells have been the rising tide that has lifted your boat. Not a bad thing if you are considering selling. Just gonna be a bird in hand vs bird in bush discussion. Good luck.
Thank you. This kind of helps define the flurry of activity I have had recently with offers.
So it’s difficult to read the title of where these wells are. Would you please tell me the description
You know, I have been having that issue with some properties in Oklahoma and in Texas (actually, some just north of Midland in southern Martin County). Anyways, I got to searching in google and talked to a couple of companies that do mineral appraisals. You may want to consider that route. There was actually a pretty wide range in what people say they will charge for an appraisal, which is why I called a few. I made it clear to them that I am not interested in getting more offers (have plenty of those already). Just want a disinterested party to tell me what the minerals are worth.
Caroline
“Just Permitted” is Block 35 2N Sec 30/35.
“Just drilled or being drilled” is Block 35 1N Sec 17/20.
Hopefully that is enough frame of reference.
Cheers
Thank you I was able to figure it out. I have a laptop now but miss my old pc.
WolfT, do you mind posting who you contacted for an appraisal in Martin County? I am in need of a basis value for my holdings in Martin County, sec. 9, Blk. 35, T1N, T&P RR Co survey, A-45, N/2 and SW/4, from inheritance in 2011. Would like a value with production and non-producing. I just sold some interest but retained current well production so what I sold is non-producing. Any help with this would be greatly appreciated.
Debfaj, thanks. Sec. 9 in Blk 35 has 5 Endeavor wells still producing and 2 producing Discovery wells. The Endeavor leases were reassigned to XTO in Dec. 2018. Horizontals on the horizon! I sold 1/2 my interests, 48 NRA for a million and kept current well production. I think I got a pretty good deal and still have 48 NRA for myself. It all depends on the location of your minerals in Martin County right now.
Thanks for the offer. Just holding my own for a while. In no big hurry to sell. I have my price and I’m just holding on until the right number comes along.
